A company tipster tells us Microsoft is cutting costs in its Online Services group, which sells businesses productivity and CRM software as well as exchange-hosted services. "We just learned today that the company is transitioning a decent chunk of the group (100+ ppl) to hourly compensation, from our current salaried gigs," writes our tipster.

These are people that have worked in the industry and the company for years, and will now have to log our lunch hours and time spent in meetings.

A Microsoft flack issued a nondenial when we reached the company, only saying: "We are not commenting on rumors or speculation about the 100 employees who were allegedly switched from salary to hourly wages." Which is funny, because in the same email, the flack was happy to comment on "rumors or speculation" regarding the nondeparture of MSN executive producer Jeff Dossett. (Photo by »Philo)